Solana (SOL) price continues its downward trend, with analysts warning of a possible decline to $125 if key support levels fail.
The cryptocurrency, which previously traded above $250, is now struggling under selling pressure, raising concerns about further downside risks. Market analyst best_analysts has highlighted the $200 resistance level as a key rejection zone, reinforcing bearish sentiment.
SOL Price Trends and Key Support Levels
Solana is currently trading near $169, maintaining a bearish trajectory since its peak in January. The price remains within a descending channel, suggesting continued weakness. Analysts believe that if SOL fails to hold its $150-$155 support range, it could move toward the $125-$130 zone, a historically strong monthly support level.
Technical indicators such as the Relative Strength Index (RSI) at 30.48 and the Money Flow Index (MFI) at 37.61 suggest that Solana is approaching oversold conditions. However, the low buying volume indicates that a potential reversal might not occur immediately.
1-day SOL trading chart | Source: Tradingview
Market Analysts Warn of Additional Selling Pressure on Solana Price
According to analyst milesdeutscher the upcoming March release of $1.6 billion worth of SOL could lead to increased market selling activity. The market situation during March creates a crucial period for investors because SOL maintains its new yearly lowest trading level.
The analyst described the situation as worse because it occurs during market weakness conditions. Future Solana ETF launches may become attractive buying candidates as demand strength increases.
Furthermore, network activity has declined by 55% because active addresses have decreased by this percentage. The decrease in user activity indicates reduced demand for Solana resulting in additional market pressure on its price.
Investor confidence experiences negative impact from three prominent scams known as $LIBRA, $TRUMP, and $Millenia rug pulls. Urgent security risks alongside trust issues in the ecosystem have made traders become more reserved about their investment decisions.
SOL investors now anticipate a selling frenzy to arise when 11.2 million SOL are set to release from FTX’s bankruptcy sale proceedings. Market entry of significant token volumes presents a primary risk factor for additional price drops which investors need to monitor.
Solana’s DEX Volumes Drop as Selling Pressure Intensifies
The decentralized exchange (DEX) trading on Solana reached a five-week minimum at $2.61 billion with a 28% drop in on-chain transaction figures. Market unease has triggered SOL’s 14% price reduction which became apparent in February.
A massive surge of funds into Solana transpired at the time SOL traded at $250 which triggered substantial market pullback.
Presently the market shows that large price jumps arrive when many investors bring assets onto networks while price drops typically follow substantial withdrawals from networks. Current SOL exchange analytics reveal rising amounts of SOL leaving platforms which means users are withdrawing their coins possibly to sell them.
The Meteora platform experienced an 18% increase in its volume while its competitors Raydium and Orca witnessed declining transaction numbers of 45% and 30% respectively with their volume reaching $658 million. The general level of trading activity stays weak providing additional evidence for bearish price predictions.
